IDB Invest completed its $1.6 billion funding program for 2021 entirely with sustainable bonds under its Sustainable Debt Framework, according to its inaugural Sustainable Bond Allocation and Impact Report.
The program included $1 billion of sustainability bonds, $424 million of social bonds and $186 million of green bonds to finance green and inclusive private sector projects across Latin America and the Caribbean. Among these are Mexico's first gender bond issued by a supranational issuer, and the first blue bond issued in the region.
"We are committed to investing in sustainability and walking the talk as a leading sustainable issuer," said James Scriven, CEO of IDB Invest. "Investors want to know the development impact achieved through their ESG investments. We are on track to delivering these results."
The report provides investors with information to assess the impact of their ESG investments. It includes data about IDB Invest's sustainable bonds, and most importantly about the projects financed with the bond proceeds, including impact indicators and case studies. An independent review by Sustainalytics confirmed the compliance of report with the use of proceeds criteria and reporting commitments in IDB Invest's Sustainable Debt Framework.
IDB Invest allocated the proceeds of the $1.6 billion sustainable bonds issued in 2021 to 54 projects, benefiting projects in Socioeconomic Advancement and Empowerment ($799 million), Renewable Energy ($387 million) and Employment Generation ($257 million). Impact metrics surpassed 2.5 billion tons of emission reductions, 570,959 SMEs financed, 5.3 million MWh of renewable energy generated, and 413,551 loans disbursed to women-led SMEs.
Sustainable investments have soared in recent years, with global ESG investments expected to increase to $50 trillion by 2025, from about $35 trillion in 2020. In Latin America and the Caribbean, thematic bonds more than doubled in two years, with a market size of $48.6 billion.